On June 25, a group of collection agencies, law firms, and industry associations filed a lawsuit against the Nevada State Commissioner requesting the Court declare invalid Nevada Senate Bill 248, which regulates medical debt collection. The new law took effect on July 1, 2021. Nevada enacted the new law last month.
The complaint alleges that the bill is preempted by the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, and Nevada Rev. Stat. § 649.332. It further alleges that the new law is impermissibly and unconstitutionally vague and violates the First Amendment, Fourteenth Amendment, and the Supremacy Clause of the U.S. Constitution. The complaint seeks preliminary and permanent injunctive relief to stop enforcement of the law.
The court has set the hearing for oral argument on the emergency motion for temporary restraining order and motion for preliminary injunction for July 27, 2021. It thus appears that Nevada Senate Bill 248, having taken effect as scheduled on July 1, 2021 , will remain in effect until at least until July 27th.
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